INSAS

Periodically,  TCB will pick a stock we may like to trade short term.  So, this week, TCB have picked the stock, INSAS to put in *Stock In Focus (SIF)*.  Please do not take this as a buy signal as our TA reading for these stocks are for sharing purposes only.  Do calculate your own risk/reward ratio if you decided to trade this counter.

Background Information

Insas Berhad operates as an investment holding and management company in Malaysia and internationally. The company's Financial Services and Credit & Leasing segment engages in stock broking and deals in securities, credit and leasing, and granting of loans and other related financing activities; and provides share registration services, management services, and nominee agent services. Its Property Investment and Development segment is involve in property holding and investment, project management, and property management and development.

Shares Issued - 693,333m

Market Cap - 845,867m

Technical Analysis

--- INSAS: Weekly Chart ---

--- INSAS: Daily Chart ---

In recent weeks. global markets have been soaring to new highs and our local bourse has just kicked start an uptrend momentum these couple of days. Most companies are expected to release their quarterly reports soon.

From a technical point of view, INSAS on the weekly and daily chart has turned bullish. A resumption in its uptrend is expected as its share price managed to break the upper Bollinger Band and trended above the 100MA which usually will be followed by a continuation in its uptrend. The uptrend is further confirmed by the closing of the fallen gap at 1.17. Noticeably, reading from all oscillators are in the bullish region and the near term outlook remains bright for INSAS.

Based on the weekly chart, with the break up from 1.17, Insas has entered into its previous Rectangle trading pattern of 1.17 to 1.34. Its previous uptrend line (marked out by the red line) will now form its strong resistance. If it can break and stay above this line, it will be in the stage 2 cycle with the potential to scale  new highs beyond 1.34.

On the daily chart, significant resistance can be found at the 1.25 level. A decisive breakout above 1.25 with volume will spur share prices higher towards the 1.32 and 1.36 levels. However if share prices are unable to hold above the 1.25 level, it will see support at 1.17 and 1.12. A trailing stop loss of 1.07 level will be triggered.

Technical Indicators :-

RSI (14 ) - 76% (Bullish )
MACD ( 26,12 ) - 0.009 ( Bullish )
Stochastic - Bullish
Volume MA - 5.295 m ( 5days ), 4.682m ( 20 days )

Price Action Technique Analysis

A collection pattern is noticeable as refilling at 1.21 level on the trading day of 19/11/2014.
Bid pattern was healthy and positive.

IDEAL

Periodically,  TCB will pick a stock we may like to trade short term.  So, this week, TCB have picked the stock, IDEAL to put in *Stock In Focus (SIF)*.  Please do not take this as a buy signal as our TA reading for these stocks are for sharing purposes only.  Do calculate your own risk/reward ratio if you decided to trade this counter.

Ideal, as its name suggest, is "ideally" primed for a bullish pursuit. 

-- Ideal: Weekly Chart --

Since the day of 8/4/2014 when it started its bullish journey, Ideal has been trending up.  As with other stocks across the bourse, it was not spared when the global correction sets in but after a series of technical rebounds, it broke out from its symmetrical triangle on 4/11 with volume which has bullish implications.  Moving forward, it is confronted with an immediate resistance of 0.75 with strong resistance expected at 0.84.  A break above its previous high of 0.84 will take Ideal to its estimated targets of 0.90, 1.00 and 1.05 respectively in the medium term.

-- Ideal: Daily Chart --

On 19/8, Ideal achieved a new high of 0.84 supported by a large trading volume.  However, it formed a dark cloud pattern on that day which carries bearish implications.  As it panned out, Ideal did went into a 2 months consolidation.  It may have found a new bottom at 0.475 and its breakout from its Falling Resistance Line on 3/11 with increased volume confirms the new bottom.  Ideal's journey in the foreseeable future is looking up and its trading pattern is building up to what looks like a Double Bottom formation with a neckline at 0.75.  This has bullish implications attached to it.

The upward momentum has picked up lately and a break above 0.67 will take it to 0.70 and subsequently to the neckline of 0.75.  A break above 0.75 would confirm the Double Bottom  formation and it would set Ideal up to challenge its previous high  of 0.84 with an estimated target of 1.00.  The recommended stop loss is 0.47.

Key Notes:

1. Ideal's financial performance has been one of growth. Revenue increased 19% in 2013 while profits from operations were up 8%.  It rakes in good positive cash flow from operations and its borrowings were fully repaid in 2013.
2. It currently has a multiple proposal that include a private placement, acquisition and diversification. (Ref: http://www.bursamalaysia.com/market/listed-companies/company-announcements/1778345)

DSONIC

Periodically,  TCB will pick a stock we may like to trade short term.  So, this week, TCB have picked the stock, DSONIC to put in *Stock In Focus (SIF)*.  Please do not take this as a buy signal as our TA reading for these stocks are for sharing purposes only.  Do calculate your own risk/reward ratio if you decided to trade this counter.

For this edition of SIF, we have featured a stock linked to one of current stock themes in play, namely, the GST and Petrol Subsidy theme.  Although, presently, it may not be fully ready for a breakout from a TA perspective, we nevertheless opine that it is a stock worth watching out for.  As with all stocks, it does carry some trading risks.

-- Dsonic: Daily Chart --

Since hitting a high of 2.425 on 1/4/2014, Dsonic underwent a 2 weeks correction that took it all the way down to 1.295, a 50% retracement. It was traded up again to the high of 2.06 in June 2014 and subsequently churned out a double top formation which broke down in Sept. 2014.  The bearish formation sent its prices down when it achieved its break down target of about 1.44, approximately a 78.6% retracement, on 8/10 and potentially could be rebounding off this retracement level.  

-- Dsonic: Daily Chart --

On 21/10, it formed an engulfing bear during the downtrend which may have the implication of a last engulfing bottom. Currently, momentum on the stock is gaining as suggested by the up trending RSI while the trading pattern has a hint of an inverted head and shoulder formation in progress which has bullish implications if a break out occurs.  The stock has an immediate support at 1.56 which if broken will have further support back at 1.49 and 1.44 respectively.  For short term traders, a stop loss of 1.43 is recommended while for mid-term traders the recommended stop loss is 1.29.

In order for it to pursue a breakout, it first needs to take out its immediate resistance at 1.64.  Further resistance awaits it at 1.72 which if broken will see it testing the strong resistance of 1.82.  A successful break in 1.82 with volume will be a break out from the downtrend line and confirms the bullish trend reversal.  

Key Notes:

1. Dsonic is heavily linked to the implementation of the petrol subsidy which represents a potential catalyst to the upward movement of the stock.

ECONBHD

Periodically,  TCB will pick a stock we may like to trade short term.  So, this week, TCB have picked the stock, ECONBHD to put in *Stock In Focus (SIF)*.  Please do not take this as a buy signal as our TA reading for these stocks are for sharing purposes only.  Do calculate your own risk/reward ratio if you decided to trade this counter.

--ECONBHD Daily Chart--

Since its listing on the main board, Econbhd has been riding on an uptrend.  From 0.605, it trended up to a high of 1.22 before it went into a consolidation phase.  The uptrend was halted by the subsequent break down in the uptrend line on 28/8 when it broke 1.01 .  Consequently, it was traded to a low of 0.955 before finding traction at 0.965 where it settled into a support base.  The current consolidation phase appears to be over and it is expected to test its immediate resistance at 1.13 backed by an immediate support of 1.05 .

Overcoming 1.13 would set it off to trend towards the previous uptrend line which is now the  resistance at 1.22. A successful penetration of  1.22 would signal a trend reversal and it is expected to challenge its immediate target of 1.30 and beyond. The recommended stop loss price is 0.95.

UPDATE on TEKSENG - A 3rd FLAG?

Periodically,  TCB will pick a stock we may like to trade short term.  So, this week, TCB have provided an update on the stock, TEKSENG to put in *Stock In Focus (SIF)*.  Please do not take this as a buy signal as our TA reading for these stocks are for sharing purposes only.  Do calculate your own risk/reward ratio if you decided to trade this counter.

Tekseng - Daily Chart 

Since our last posting on 1 Sept, 2014, Tekseng has broken out from its 2nd flag formation on 4/9 with volume to test its resistance at 0.70.  It successfully broke through this resistance on 5/9 supported with good volume to move into unchartered territory that yielded the year's high of 0.875. 

It is currently consolidating under a 3rd flag (Flag 3) formation that comes with a support of 0.78. A successful take out of its resistance at 0.835 would signal another bullish breakout from the flag.  It is then expected to re-challenge the resistance at 0.875 before confronting the psychological resistance of 0.90.  Should it clear these 2 hurdles, it would indeed scale another new high with immediate target prices of 0.95 and 1.00 respectively. However, if its support is penetrated, it would signal weaknesses in the stock.  The recommended stop loss is 0.75/0.76.

FITTERS

Periodically,  TCB will pick a stock we may like to trade short term.  So, this week, TCB have picked the stock, FITTERS to put in *Stock In Focus (SIF)*.  Please do not take this as a buy signal as our TA reading for these stocks are for sharing purpose only.  Do calculate your own risk/reward ratio if you decided to trade this counter. 

-- FITTERS Weekly Chart --

Fitters has been on a bullish run that started in May 2013 and persisted into 2014.  Based on its weekly chart, the past 2 weeks saw the formation of 2 spinning top candles in succession, an indication of indecision setting into the stock.  The resultant direction of its price movement from this indecision can be either up or down.  In view that its uptrend is still intact, the spinning top may be a continuation pattern of its uptrend provided it can break and scale above 1.38 with an immediate target of 1.60.  However, if it breaks below 1.29, this will be the first sign of weakness in the stock.  A stop loss of 1.15 is recommended for mid term traders.

 

 -- FITTERS Daily Chart --

After hitting a high of 1.38, it formed a bearish harami on 27/8, implying that it is due for some correction.  It did underwent correction but its uptrend remains intact.  The breakaway gap formed on 22/8 has bullish implications for further upward movements which would take it to its resistance at 1.38.  A successful take-out of this resistance will see it trend towards its target prices at 1.46, 1.56 and 1.66.  Any weakness due to consolidation should find immediate support at 1.29/1.30 with the cushion of strong support at 1.25/1.23, the gap support.  This weakness may offer buying opportunities for future play.  For short term traders, the recommended stop loss is 1.22.

Key Notes:

1. For the cumulative period ending 30 June, 2014, it recorded a 3.5% increase in profits before tax on the back of a 21% increase in revenue.
2. Recently announced a proposed bonus issue and free warrants.
3. Since diversifying into property development in 2010, it is now venturing into the pipe business with the completion of its pipe manufacturing plant in Gebeng, Kuantan due for completion by the 4th quarter of 2014.  The plant would be commissioned in October starting with three production lines first, which should be able to churn out RM150mil in revenue for the company.

Reference:

1. http://www.bursamalaysia.com/market/listed-companies/company-announcements/1722573
2. http://www.bursamalaysia.com/market/listed-companies/company-announcements/1725893
3. Star Biz, Aug 11, 2014

TEKSENG

Periodically,  TCB will pick a stock we may like to trade short term.  So, this week, TCB have picked the stock, TEKSENG to put in *Stock In Focus (SIF)*.  Please do not take this as a buy signal as our TA reading for these stocks are for sharing purpose only.  Do calculate your own risk/reward ratio if you decided to trade this counter. 

--TEKSENG Daily chart--

--TEKSENG Weekly Chart--

Tekseng is bullish after breaking out from its round bottom formation.  On the daily chart, there were two breakouts that was accompanied with volume.  On the first breakout on 11/8, it scaled to a high of 0.50 before consolidating into a flag pattern (flag 1).  

The second breakout came on 22/8, supported with an even higher volume and it attained a new high of 0.645. The bearish harami that ensued, signals a period of uncertainty that could descend onto the stock which it did. It is now trading in its second flag formation (flag 2) with a support of 0.545.  A breakout from its current resistance of 0.595/0.60 will set it off to test its important resistance at 0.645/0.65.  It will encounter strong resistance at 0.70 before attempting to realize its immediate target price of 0.73/0.75.  A stop loss of 0.51 is recommended for short term traders while for mid term traders, a stop loss of 0.48 is suggested..   

Key Notes:

1. The company reported an improved performance for the first half of 2014 with revenue increasing 26% while profits before tax increased almost 6 fold over the corresponding period of last year 

References:

http://www.bursamalaysia.com/market/listed-companies/company-announcements/1717681

Stock in focus of the week - SMRT

Periodically,  TCB will pick a stock we may like to trade short term, so this week TCB have picked the stock SMRT to put in *Stock In Focus (SIF)*, please do not take this as a buy signal as our TA reading for these stocks are for sharing purpose only. Do calculate your own risk/Rewards ratio if you decided to trade this counter. 

--SMRT Weekly Chart--

After hitting a high of 0.945 during the week of 15/8, it formed a bearish engulfing candle during the subsequent week which could possibly be a precursor to some consolidation. However, its bullish trend remains intact in view that its uptrend line has not been broken through. Strong resistance is expected at 0.93 generated by the engulfing bear.  A break in 0.93 with volume would consequentially take out its 0.945 resistance and set it off into unchartered territory. For the mid-term, it should have good support at 0.805. A stop loss of 0.785 is recommended for mid-term traders.

                                     

--SMRT Daily Chart--

Due to the sell down on 20/8, SMRT too came under selling pressures and panic selling brought its price down to a low of 0.815. It has now found immediate support at 0.83. The low volume on 22/8 provided a slight hint of sellers exhaustion, subject to further confirmation. As the stock remains bullish, the current consolidation phase offers an opportunity to accumulate for any potential run up in price. If it can successfully take out its resistance at 0.905 with volume, it is expected to challenge its high of 0.945. However, it will encounter strong resistance at 1.00, a psychological barrier, before it moves into unchartered territory with an immediate target price (TP) of 1.04 and subsequently head towards TP2 of 1.18. Recommended stop loss for short term traders is 0.80.


Catalysts:
1.  Its proposed transfer into the Main Board of KLSE with implications for potential fund managers investment and it also implicitly indicates the improving fundamentals of the company over the years.
2.  Its education venture via CUCMS which is one of its key driver of future growth.

Key Notes:

There were share buy backs on 8/8/2014 at prices 0.855 and 0.87 and again on 21/8/2014 at 0.835

(Source: Bursa Malaysia)

Reference for Catalysts and Key Notes:
1. http://www.bursamalaysia.com/market/listed-companies/company-announcements/1710545
2. http://www.thestar.com.my/Business/Business-News/2014/05/10/Education-move-spurs-interest-in-SMRT/
3. http://www.thestar.com.my/Business/Business-News/2014/05/07/Brahmal-emerges-in-SMRT-The-company-has-ventured-into-education-sector/
3. http://www.thestar.com.my/Business/Business-News/2014/07/25/SMRT-buying-rest-of-InFusion/
4. http://www.bursamalaysia.com/market/listed-companies/company-announcements/1716861